NEW DELHI: State-run NLC India Ltd today said it has passed on the benefit of lower power tariff amounting to about Rs 683 crore to distribution firms following reduction in transfer price of lignite.

NLC said it has been able to reduce Lignite Transfer Price for captive use by around Rs 300/tonne leading to lowering of power tariff ranging from Rs 0.35 to Rs 0.58 per Kwhr (unit) of electricity from its power plants with effect from April/May 2018.

NLC said in a statement that around Rs 683 crore will be passed on by it to the beneficiary Power Distributing Companies in southern region.

It said that earlier, with GST roll out from July 1, 2017, as a power generator using lignite from its own mines in the same state, the company passed on the benefit coming from the non-applicability of compensatory cess.

This had resulted in reduction of power tariff ranging from Rs 0.45 to Rs 0.75 per Kwhr based on primary fuel consumption in its various power plants. That time around Rs 631 crore benefit (for nine months) was passed on to user discoms in southern states as well as in Rajasthan, it said.

Now with the further reduction of transfer price, the total reduction in power tariff has been to the tune of Rs 0.80 to Rs 1.33 per Kwhr resulting in huge benefit to the consumers by almost Rs 1,523 crore per annum, it added.